MORTGAGE LOANS / LAP - ePaisawala : Loans Marketplace

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MORTGAGE LOANS / LAP

Mortgage Loan / Loans Against Property: Compare & Apply Online.

Loan against Property (LAP), also known as mortgage loan, allows consumers to raise funds by leveraging their residential, commercial or industrial properties. Like unsecured personal loans, LAP can also be availed for meeting both personal and business needs other than speculative purposes. Banks and HFCs offer loan against property for tenures of up to 20 years. The loan amount for LAP can go up to 75% of the property’s market value, depending on the lender and the credit profile of the borrowers. Many lenders also offer Lease Rental Discounting (LRD) facility, which allows consumers to avail loan by pledging the rental receipts of their tenants

Unlock Best Mortgage Loan / Loans Against Property Offers From 80+ Lenders

Mortgage Loan / Loans Against Property Chart

Avail Mortgage Loans / Loans Against Property up to Rs.10 crore + with interest rates starting at 9% p.a. with additional benefits such as extended loan terms and flexible repayment options. Simple documentation, quick processing, and excellent customer service with a response time of 30 – 45 minutes makes ePaisawala.com a go-to place for all your Mortgage Loans / Loans Against Property needs.

Bank Name	Interest Rate	Processing Fee	Loan Amount	Tenure	Loan to	Apply Now
SBI Bank Home Loans	6.70% - 7.50% (Floating Rate)	0% - 0.35% Min.Rs.2,000; Max.Rs.10,000	10 Lacs - 10 Cr	1 - 30 Years	30 < : 90% 30-75 : 80% 75 > 75%	Apply Now
HDFC Bank Home Loans	6.70% - 7.50% (Floating Rate)	0% - 0.35% Min.Rs.2,000; Max.Rs.10,000	10 Lacs - 10 Cr	1 - 30 Years	30 < : 90% 30-75 : 80% 75 > 75%	Apply Now
ICICI Bank Home Loans	6.70% - 7.50% (Floating Rate)	0% - 0.35% Min.Rs.2,000; Max.Rs.10,000	10 Lacs - 10 Cr	1 - 30 Years	30 < : 90% 30-75 : 80% 75 > 75%	Apply Now
AXIS Bank Home Loans	6.70% - 7.50% (Floating Rate)	0% - 0.35% Min.Rs.2,000; Max.Rs.10,000	10 Lacs - 10 Cr	1 - 30 Years	30 < : 90% 30-75 : 80% 75 > 75%	Apply Now
AXIS Bank Home Loans	6.70% - 7.50% (Floating Rate)	0% - 0.35% Min.Rs.2,000; Max.Rs.10,000	10 Lacs - 10 Cr	1 - 30 Years	30 < : 90% 30-75 : 80% 75 > 75%	Apply Now
AXIS Bank Home Loans	6.70% - 7.50% (Floating Rate)	0% - 0.35% Min.Rs.2,000; Max.Rs.10,000	10 Lacs - 10 Cr	1 - 30 Years	30 < : 90% 30-75 : 80% 75 > 75%	Apply Now
AXIS Bank Home Loans	6.70% - 7.50% (Floating Rate)	0% - 0.35% Min.Rs.2,000; Max.Rs.10,000	10 Lacs - 10 Cr	1 - 30 Years	30 < : 90% 30-75 : 80% 75 > 75%	Apply Now

Processing Fees & Other Charges : Mortgage Loan / Loans Against Property

Particulars	Charges
Processing Fee	1% – 2% of loan amount
Foreclosure/Prepayment Charges	For floating rate: Nil
Foreclosure/Prepayment Charges	For fixed rate: Around 2% – 5% on the principal outstanding
Overdue Charges on EMI	2% per month of the unpaid EMI
EMI Bounce Charges	Around Rs 400
Penal Interest	Usually at 24% p.a. (2% per month on the overdue installment/s)

Check home loan processing fees and other charges of top banks and HFCs.

Types of Home Loans

Home Purchase Loan is offered for buying ready-to-move-in properties, under-construction properties and pre-owned homes/resale properties. helps you buy a residential plot and build a house on it within a given time frame
Composite Loan can be availed for buying a plot and building a house on it. The first disbursement in composite loan is made towards plot purchase. Subsequent payments depend on the stages of construction of the house.
Home Construction Loan is offered to individuals for house construction. The disbursements depend on the stages of construction of the house.
Home Renovation/ Improvement Loan is for meeting home renovation costs of an existing house. The interest rate for a home renovation/improvement loan and a regular home loan are usually same.
Home Extension Loan is for those requiring funds to extend or add more space to their existing house. In this, lenders usually lend 75% – 90% of the construction estimate, depending on the loan amount and LTV ratio.
Bridge Loan is a short-term home loan suitable for individuals planning to buy a new house with the sale proceeds of their existing house.
Interest Saver Loan is a home loan overdraft wherein the borrowers’ home loan account is linked to their bank account. Any amount deposited in the bank account over and above the EMI is considered as a prepayment towards the loan, thus, saving on the interest amount.
Step Up Loan allows borrowers to pay lower EMIs during the initial years of the loan tenure and have the provision of increasing the EMI amount over time. This makes the loan affordable for young professionals who have just started their career.

Mortgage Loan / Loans Against Property Eligibility Criteria

The eligibility criteria for availing LAP varies across lenders, below are some general conditions that must be fulfilled to apply for loan against property:

Residential Status: Resident Indian and Non-resident Indian
Minimum Age Limit: 18 years
Maximum Age Limit: 70 years
Employment Type: Salaried, Self-employed Professional and Self-employed Non-Professional
Minimum Salary: At least Rs. 12,000 per month
Net Annual Income: At least Rs. 1.5 lakh p.a.
Work Experience: At least 1 year in the current organisation
LTV Ratio: Up to 75% of property value
Credit Score: Preferably 750 and above
Property Type: Residential, Commercial and Industrial properties are eligible to be pledged as collateral. Lenders will also consider the age and condition of the property before accepting the property as collateral.

Documents Required for Applying for a Mortgage Loan / Loans Against Property

Proof of Identity (Passport/ Voter ID Card/ Driving License/ PAN Card)
Proof of Residence (Ration card/ Telephone Bill/ Electricity Bill/ Rental Agreement/ Passport/ Bank Passbook or Statement/ Driving License)
Proof of Age (PAN Card/ Passport/ Any other certificate from a statutory authority)
Proof of Income for Salaried (Form 16, Latest Payslips, ITR of past 3 years and investment proofs (if any)
Proof of Income for Self Employed (Details of ITR of last 3 years, Balance Sheet and Profit & Loss Account Statement of the Company/Firm, Business License Details and Proof of Business Address)
Property-related Documents (Title Deeds including the previous chain of the property documents, Nil Encumbrance Certificate on the concerned property, approved plan [if applicable])

Read Also: The complete list of documents required for loan against property

Tax Benefits on Home Loans

House loan borrowers can avail tax benefits under various sections of the Income Tax Act. These home loan tax benefits help borrowers save a substantial amount of money every year. Below are the tax benefits that you can get on your home loan EMI payments:

Section of Income Tax Act	Nature of Home Loan Tax Deduction	Max. Tax Deductible Amt.
Section 24(b)	Interest paid	Rs. 2 lakh
Section 80C	Principal (including stamp duty and registration fee)	Rs. 1.5 lakh

How to Apply for Mortgage Loan / Loans Against Property Online at ePaisawala

Step 1: Provide basic details such as your mobile number, loan amount, property location, employment type, etc.

Step 2: Compare and apply from the list of offers.

Step 3: Wait for the loan experts to get in touch with you.

Mortgage Loan / Loans Against Property EMI & Cost Calculator

How It Works

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FAQs : Frequently Ask Questions

1. Can I get a home loan for the entire property value?

Ans. No, you cannot get a home loan for the entire property value as the Reserve Bank of India (RBI) has capped the Loan-to-Value (LTV) ratio of housing loans. As per the RBI guidelines, the LTV ratio can go up to 90% of the property value for loan amounts up to Rs 30 lakh; for loan amounts above Rs 30 lakh and up to Rs 75 lakh, the LTV ratio limit is up to 80% of the property value and for loan amounts above Rs 75 lakh, the LTV ratio can go up to 75% of the property value. This implies that at least 10% of the remaining value must be shelled out by the borrower as down payment.

Subject to the caps set by the RBI on LTV ratios, banks/HFCs further fix the LTV ratio on the basis of the risk assessment and credit profile of the loan applicant. Those with lower creditworthiness are usually offered lower LTV ratio.

2. How do lenders check the EMI affordability for their home loan applicants?

Ans. Lenders consider the repayment capacity of home loan applicants while evaluating their loan application and loan amount eligibility. house loan lenders usually prefer lending to home loan applicants having total EMIs, including EMI of the proposed home loan, to be within 50-60% of their monthly income. Hence, home loan applicants can use online home loan EMI calculator to find out the optimum house loan amount and tenure based on their repayment capacity.

3. How much credit score should I have to get a housing loan?

Ans. Lenders prefer sanctioning housing loans to applicants having credit scores of 750 and above as such high credit scores reflect responsible credit behavior and reduce credit risk for lenders. This is also the reason why many lenders offer lower house loan interest rates to applicants having high credit scores. However, some lenders offer home loan to applicants having low credit score at higher interest rates. Therefore, one must check their credit scores at regular intervals. Individuals having no or low credit scores can build or rebuild their credit scores with the help of Credit Unnati.

4. Who can co-sign a home loan?

Ans. Your spouse or blood relatives such as your father, mother, siblings and children can co-sign a home loan with you. Also, all co-owners of the property must be co-applicants in housing loan.

5. Are there any prepayment charges in case of a house loan?

Ans. In the case of floating rate home loans, lenders don’t charge a pre-payment penalty as per RBI directives. However, lenders may levy prepayment penalty in case of prepayment of fixed rate home loans.

6. What is a home loan balance transfer?

Ans. Home loan balance transfer allows existing home loan borrowers to transfer their outstanding home loans to a new lender at lower interest rates and/or better loan terms. This facility is especially helpful for those borrowers who had availed housing loans at higher interest rates but are now eligible for lower interest rates due to their improved credit profile or reduction in market interest rates.

7. Can I take two home loans at the same time?

Ans. Yes, if the lender of your second home loan is satisfied with your repayment capacity, credit profile and the characteristics of the pledged property, you can avail a second house loan for another property.

8. How long does it take to get a home loan sanctioned?

Ans. Usually, it takes 1 to 2 weeks for lenders to sanction a housing loan. However, it may significantly vary depending on banks/HFCs loan approval process, credit profile of the applicant and the features of the property to be purchased/ constructed.

Know more about your lender’s house loan eligibility requirements and documentation process so that you’re prepared in advance, which in turn can reduce the time taken for loan approval process.

9. What is the difference between a fixed rate and floating rate home loan?

Ans. In a fixed rate home loan, the rate of interest applicable at the time of loan disbursal remains same throughout the loan period. As the interest rates remain the same throughout the loan tenure, you will be shielded from interest rates increases during the loan tenure. However, at any time during the loan tenure, if the lending rates fall, the fixed interest rates will remain unchanged, giving you no benefit of the reduced EMIs.

In case of floating rate home loans, the interest rates are subject to change as per the changes in the linked benchmark rates used by the lenders. Floating interest rate home loans are usually cheaper than the fixed interest rate home loans and the RBI mandates no prepayment or foreclosure charges for individuals borrowing a floating rate home loan.

10. Can I prepay my outstanding housing loan amount?

Ans. Yes, you can prepay your home loan. If you have floating rate home loans, no prepayment charges will be levied. However, in case of fixed rate home loans, lenders might levy around 2% to 4% of the prepayment charges.

11. Can I avail tax deductions on my home loan?

Ans. Yes. The repayment of principal amount would qualify for tax deductions under Section 80C of Income Tax Act. The repayment of interest component would qualify for tax deduction under Section 24(b) of the IT Act.

12. Can I switch from a fixed rate to a floating rate during my home loan tenure?

Ans. Yes, most lenders offering home loans at both fixed and floating rates allow their existing home loan borrowers to convert their fixed rate loans into floating rate loans and vice versa, on the payment of conversion or switching fee.

13. Which bank offers the best home loan interest rates?

Ans. To most consumer, lenders offering best home loan interest rates would be synonymous with the lender offering lowest interest. However, lenders set home loan interest rates for their loan applicants based on their credit risk assessment. As the credit risk assessment process followed by the lenders can vary widely, home loan applicants should compare the home loan offerings of as many lenders as possible to get the best possible home loan rates available on their credit profile.

14. Is it possible to avail a personal loan if I am currently servicing a home loan?

Ans. Yes, you can apply for personal loan even if you have an ongoing home loan. However, the odds of getting your personal loan application approved would depend on whether you have sufficient repayment capacity to pay off the proposed personal loan. Lenders usually prefer offering personal loans to applicants whose total loan repayment obligations, including EMI of the proposed personal loan, is within 50% to 55% of their monthly income.

Alternatively, home loan borrowers can consider availing top-up home loans. Like personal loan, top-up home loan does not have any end use restriction. The interest rates offered on top-up home loans are usually the same or slightly higher than the underlying home loan interest rates, which makes it a cheaper alternative to personal loans.

Moreover, personal loan tenures usually go up to 7 years whereas the tenure of top up home loans can go up to 15 years, depending on the residual tenure of the underlying home loan. Thus, longer loan tenure and lower interest rates of top-up home loans would allow lower EMIs than personal loans and thereby, increase the EMI affordability for the borrowers.